A report from Silicon Valley Bank (SVB) has found that most US tech start-ups surveyed (83pc) plan to hire in the coming year, up from 73pc a year ago.
The near-term business outlook for start-ups is optimistic, with nearly one in four companies exceeding their 2010 revenue targets, up on 2009 (15pc), according to the report entitled Startup Outlook 2011.
Two in three executives say business conditions in 2010 are better than they were last year, and three in four expect they will get even better in the coming 12 months. In total, 375 executives of emerging companies were surveyed for the report.
“High-growth small business start-ups are the principal driver of net new job creation. They outperform the broader economy, whether measured in terms of job growth or revenue growth. They are responsible for creating entire new industries – from IT and semiconductors, to biotechnology, to online retailing, social media and cloud computing,” the report states.
“They are an important source of growth for more mature businesses, and the innovative technologies they develop contribute to US productivity growth and global economic competitiveness.”
The US remains an attractive place to start and build high-growth companies, according to SVB. More than three-quarters of respondents (77pc) said the country’s focus on innovation and its entrepreneurial mindset make the US appealing for business.
Around half cite four other factors: the US’ proximity to target customers and/or their supply chains, the quality of US employees, its culture, and access to capital in the US.